Exercise 11-9

Beca Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:

Materials (0.90 yards $12.00)$10.80Direct labor (1.20 hours $13.60)$16.32

During May, the company produced 3,520 band hats; 4,050 yards of material were purchased for $41,715, and 2,930 yards of material were used in production. Also during May, 4,460 direct labor hours were worked at a cost of $66,900. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable.(Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Material Price Variance$

Favorable

Neither Unfavorable nor Favorable

Unfavorable

Material Quantity Variance$

Unfavorable

Neither Unfavorable nor Favorable

Favorable

Labor Rate Variance$

Neither Unfavorable nor Favorable

Unfavorable

Favorable

Labor Efficiency Variance$

Favorable

Unfavorable

Neither Unfavorable nor Favorable